A ascending triangle appears to be setting up on the daily chart of the iShares Japanese index chart. Signs are looking positive for a breakout past the top of the triangle. The 200 day and 50 day MA’s are sloping up, and the market broke through the 50 day recently. Momentum indicators are hooking up, including the longer termed MACD indicator. Comparative relative strength (CRS) vs. the U.S. market (second pane from the bottom of the chart) is still questionable, but there may be signs of a turnaround happening on this indicator. Note the recent attempt to move above its negative trendline.
I wouldn’t consider entering this trade with fresh money until the triangle breakout occurs with conviction, in this case through $10.20 on the INJ chart. You’ll also want to see the CRS line pick up a bit more. But the signs are there – should we see a strong move on this market inspiring a triangle breakout, I’d be looking at Japan as a place to invest some capital.
Upcoming speaking events with Keith Richards
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